Saturday, February 9, 2013

Why Tyson Foods Is Poised to Keep Popping

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, meat producer Tyson Foods (NYSE: TSN  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Tyson and see what CAPS investors are saying about the stock right now.

Tyson facts

Headquarters (founded)

Springdale, Ark. (1935)

Market Cap

$8.2 billion

Industry

Packaged foods and meats

Trailing-12-Month Revenue

$33.4 billion

Management

CEO Donnie Smith (since 2009)

CFO Dennis Leatherby (since 2008)

Return on Equity (average, past 3 years)

12.7%

Cash/Debt

$951.0 million/$2.4 billion

Dividend Yield

0.9%

Competitors

Cargill

Pilgrim's Pride (Nasdaq: PPC)

Smithfield Foods (NYSE: SFD  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 80% of the 356 members who have rated Tyson believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, hend6, highlighted the stock as a particularly stable opportunity:

Despite volatile food prices, Tyson's income is staying fairly steady. Their gross margin is very slim, but their net profit is still above water. A strong balance sheet for debt coverage helps, as well as a small dividend.

If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its four-star rating, Tyson may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

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